The Sensex was at an all time high when I was around. The institutional investors all are loaded up on stocks like SBI, ICICI and many other financial institutions which tells me that the credit cycle in india really did catch up. The fellows with black money are making hay on the real estate boom all across the hot metros. If you look at Infosys' balance sheet you'll see that they have a nice bunch of land holdings (wonder why?) . Forex flows are great (albeit in the short term they look negative thanks to the capital account convertibility). If I have to invest, I would in infrastructure.
In short we are just like Japan in the 1980s.
Good for everyone :)
2 comments:
Why the sudden greed for investments? if you ask me..one should use the land to grow chikkoo trees and market chikkoo milk shakes(2 spoons of sugar please!)
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And on a more serious note, my opinion is that Japan never had a population growth rate anywhere close to India's..so infrastructure has to develop to support the growing need to provide shelter the burgeoning masses..now how much people are willing to pay for their houses and what is the right price is something that the black market and the bank accounts of software engineers have to work on..
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